Acceptance of Resignation – Whether it is Necessary?

To start up while writing on this topic, would like to mention that an employer cannot decline to accept the resignation of an employee in view of the settled law. However, the Supreme Court has held that a resignation by an employee would, however, normally require to be accepted by the employer in order to be effective. It can be that in certain circumstances an employer would be justified.

To explain this in an example, we can mention that, when an employee wants to leave in the middle of a work wherein his presence and participation are necessary, an employer can also refuse to accept the resignation, also when there is a disciplinary enquiry pending against the employee. In such a case, to permit an employee to resign would be to allow him to go away from the service and escape the consequences of an adverse finding against him in such an enquiry.

There can also be other grounds on which an employer would be justified in not accepting the resignation of an employee. In one case the Hon’ble Karnataka High Court has held that acceptance of resignation of a bank employee cannot be declined when there is has been acceptance of such resignations over dozen of officers.

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Grievance Redressal Committee is it a necessity?

As per the amended provisions of Industrial Disputes Act, 1947 w.e.f. 15.09.2010, provide that every industrial establishment employee twenty or more workmen shall have one or more Grievance Redressal Committee as per norms which is given below for the resolution of disputes.

1.       The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.

2.       The chairperson of the Grievance Redressal Committee shall be selected from the employer and from along the workmen alternatively on rotation basis every year.

3.       The total number of members of the Grievance Redressal Committee shall not exceed more than six, provided that there shall be, as far as possible, one woman member if the Grievance Redressal Committee has two members and in case the numbers of members are more than two, the number of women members may be increased proportionately.

4.       Notwithstanding anything contain in section 9C of the Industrial Disputes Act, 1947, providing for setting up of Grievance Redressal Machinery, the setting up of Grievance Redressal Committee shall not affect the right of the workman to raise industrial dispute on the same matter under the provisions of said Act.

5.       The Grievance Redressal Committee may complete its proceedings within thirty days on receipt of a written application by or on behalf of the aggrieved party.

6.       The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the employer against the decision of Grievance Redressal Committee and the employer shall, within one month from the date of receipt of such appeal, dispose of the same and send a copy of his decision to the workman concerned.

Nothing contained in section 9C of the Industrial Disputes Act, 1947 shall apply to the workmen for whom there is an established Grievance Redressal mechanism in the establishment concerned.

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Interpretation- Five year service for Gratuity

In one famous case, the Hon’ble Madras High Court has held that an employee rendering continuous service for a period of 240 days in a year, that is, the fifth year will be deemed to have continued in service for one year as stipulated under section 2A of Payment of Gratuity Act, 1972. 

Accordingly, an employee who has put in his service for 10 months 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous service of five years and is entitle to gratuity. The Hon’ble High Court also distinguished the earlier ruling of Hon’ble Andhra Pradesh High Court wherein it was held that an employee who has been worked for 4 years and 11 months and 10 days having not completed five years of service will not be entitled to gratuity.

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Gratuity to casual workers

Casual workers have been rightly held to be entitled for gratuity by the Controlling Authority under the Payment of Gratuity Act, 1972. The order for which it has been upheld by the Appellate Authority, when the casual workers have been working for over two decades hence while dismissing the writ petition, as filed by the Southern Railway, the Hon’ble High Court also imposed cost to be paid to the contesting employees.

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Minimum Wages under Central sphere W.E.F. 01-10-2014

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Information in this blog is being provided as-is without any warranty/guarantee of any kind.

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Maternity Benefit Under Employees State Insurance Act

Maternity benefit under ESI consists of periodical cash payments in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, to an insured woman as certified by a duly appointed medical officer or mid wife.

Section 56 under ESI Central Rules 1950 mentions,

" An Insured women (IW) shall be qualified to claim maternity benefits for a confinement occurring or expected to occur in a benefit period, if the contributions in respect of her were payable for not less than 70 days in the immediately preceding two consecutive contribution periods."


To that effect, the normal contribution periods are April to September and October to March. There are two corresponding benefit periods also, viz. January to June and July to December. Any employee who becomes a member of ESI is eligible for benefits after around nine months of his/her admission.

If date of delivery is in the month of July, she should have paid contributions at least for 70 days in the two consecutive contribution periods, ie, previous year's October to March period and April to September period. Woman employee who join as newly will not be eligible for maternity benefit.

Furthermore, the responsibility for payment of maternity benefit in respect of ESI covered employee is with the ESIC whereas it lies with the employer in respect of an employee who is not covered by ESI Act.

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IMPORTANT:

Information in this blog is being provided as-is without any warranty/guarantee of any kind.

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Holidays to be observed in Central Government Offices during the year 2015

Holidays to be observed in Central Government Offices during the year 2015

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